DSG Int. PLC - Sales to 29 December 2007
RNS Number:9788K
DSG International PLC
03 January 2008
3 January 2008
DSG INTERNATIONAL PLC
INTERIM TRADING STATEMENT
DSG international plc, one of Europe's leading specialist electrical retailers,
is today updating the market on trading for the 11 weeks ended 29 December 2007
- prior year comparative data is attached in the appendix.
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11 Weeks ended 29 December 2007
Sales Total growth Like for like growth
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ELECTRICALS
UK & Ireland 0% 0%
Nordic +4% (1)%
Southern Europe +5% (7)%
Italy +3% (11)%
Greece +9% +1%
Central Europe +19% n/a
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Total Electricals Division +6% (1)%
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COMPUTING
UK (8)% (10)%
International +6% n/a
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Total Computing Division (5)% (11)%
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E-COMMERCE Division (Dixons.co.uk &
FotoVista) n/a +31%
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Total Group +5% (1)%
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Group like for like gross margin was down 0.3% driven by promotional activity in
weaker consumer environments.
Sir John Collins, Group Chairman, commented:
'Total Group sales were up 5%, however like for like sales were down 1%
reflecting generally weaker consumer environments across many of our markets.
Overall trading for this important period, in which over half our annual profits
are usually generated, has been disappointing, particularly in the UK, Italy and
Spain. This weaker trading, together with a more cautious outlook for the
balance of the year, means that we now expect full year profits before tax to be
some £40 - £50million lower than current expectations.
The UK & Ireland Electricals business saw stronger demand in the post Christmas
sale period. This was driven by promotions around flat panel televisions,
laptops and digital imaging, negatively impacting gross margin for the period.
Sales in UK Computing were very disappointing with lower demand for laptops in
the pre Christmas gifting period, but good demand for games consoles and digital
photo frames. Driven by promotions, sales of laptops improved in the post
Christmas period. Sales of accessories were lower year on year, in line with the
trends reported in the first half.
The Nordics, Greece and Central European electricals businesses all delivered a
satisfactory performance over this period.
In Italy, strong promotions helped stimulate a better sale period, however the
performance remains disappointing and as a result it is expected that the
carrying value of the goodwill will be reviewed in the full year audit.
In Spain, PC City experienced a slowdown in sales in line with the trends seen
during our second quarter.
Our e-commerce businesses of Dixons.co.uk and FotoVista performed well with
total sales up 31% year on year from a strong base.'
There will be a conference call for investors and analysts at 8.30am this
morning. The dial in number is +44 (0) 845 111 4059.
For further information
David Lloyd-Seed, Director of Investor Relations, DSGi 01727 205065
Mark Webb, Corporate Media Relations Manager, DSGi 01727 205019
Susan Gilchrist or
Laura Cummings Brunswick Group 020 7404 5959
Information on DSG international plc is available at http://www.dsgiplc.com
NOTES:
(1) The change in total sales for the Divisions and the Group are in
Sterling and exclude discontinued operations. All other figures are in
local currency.
(2) Like for like sales are calculated based on stores that have been open
for a full financial year both at the commencement and end of the financial
period. Customer support agreement sales are excluded from all UK like for
like calculations. Operations that are subject to closure have sales
excluded as of the announcement date.
(3) UK Electricals comprises Currys, Currys.digital and Dixons Tax Free.
(4) UK Computing comprises PC World, DSGi Business and The TechGuys. Like
for like sales are for PC World only.
(5) International Computing comprises PC City in Spain, Italy and Sweden.
(6) The numbers of International Computing and Central Europe stores trading
are insufficient for a meaningful like for like comparison to be made.
(7) E-commerce division comprises Dixons.co.uk and FotoVista.
(8) Like for like gross margins are calculated for the Group excluding the
e-commerce division.
(9) Certain statements made in this announcement are forward looking
statements. Such statements are based on current expectations and are
subject to a number of risks and uncertainties that could cause actual
results to differ materially from any expected future events or results
referred to in these forward looking statements. Unless otherwise required
by applicable laws, regulations or accounting standards, we do not
undertake any obligation to update or revise any forward looking
statements, whether as a result of new information, future developments or
otherwise.
Appendix
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The table below shows, for comparative purposes only, the total sales and like
for like sales performance for DSG international plc for the 11 week period to
30 December 2006:-
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11 Weeks ended 30 December 2006
Sales Total growth Like for like growth
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ELECTRICALS
UK & Ireland +1% +1%
Nordic +33% +13%
Southern Europe +3% (3)%
Italy (2)% (8)%
Greece +17% +7%
Central Europe +25% n/a
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Total Electricals Division +9% +2%
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COMPUTING
UK +6% +6%
International +18% n/a
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Total Computing Division +8% +4%
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E-COMMERCE Division (Dixons.co.uk only) n/a +156%
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Total Group +15% +4%
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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